Reports claim that hackers may have breached U.S. government crypto wallets, stealing around $20 million worth of various assets. Crypto detectives suggest the hackers have already started laundering the stolen funds, which are believed to be part of the $3.6 billion in cryptocurrencies seized from the 2016 Bitfinex hack. However, some speculate this activity may indicate a government sale instead.
Did Hackers Breach U.S. Government Crypto Wallets?
According to reports, hackers allegedly infiltrated government wallets holding massive crypto reserves, seizing $20 million in assets. The incident was initially flagged by Arkham Intelligence, which noticed unusual activity from these wallets:
“Hackers seem to have taken $20 million from a U.S. government-linked address. We believe the funds are being laundered through suspicious addresses tied to known money-laundering services.”
Blockchain detective ZachXBT also weighed in, noting that some stolen funds have likely already been moved to several exchanges. These assets reportedly include USDC, USDT, aUSDC, and ETH, further fueling concerns.
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Origins of U.S. Crypto Holdings
The U.S. government is one of the largest holders of Bitcoin and other major digital assets, much of it seized from criminal cases over the years. Previous hints of potential sales have even spurred market panic. If hackers successfully breached government security and laundered the stolen crypto, it would raise significant concerns about the security of these assets.
Arkham suggested these funds are connected to the $3.6 billion in assets seized from the Bitfinex hack. Recently, the U.S. government took steps to address compensation related to the 2016 hack, creating a pathway for affected users to reclaim assets and pressuring hackers to relinquish any claim to the stolen funds.
Or is the U.S. Government Selling Crypto?
Adding to the intrigue, Arkham Intelligence observed that funds moved to address 0x348 were later sold. Lookonchain data shows 148 ETH was sold on Binance, one of the world’s largest crypto exchanges. Address 0xE2F—among nine other government-controlled addresses tied to Bitfinex’s seized funds—was listed in court documents and may have been actively selling assets. This activity has sparked rumors that the sales may be related to ongoing legal efforts by the government.
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